Exercise 4 Based on production function Q (L, K) = L0.5K0.5, Output=20 Labour Capital Labour Capital Labour Capital Output-10 Output-24 4 4 4 64 20 6,25 64 16 16 64 10 16 20 6,25 64 4 Complete the...

Exercise 4<br>Based on production function Q (L, K) = L0.5K0.5,<br>Output=20<br>Labour Capital Labour Capital Labour Capital<br>Output-10<br>Output-24<br>4<br>4<br>4<br>64<br>20<br>6,25<br>64<br>16<br>16<br>64<br>10<br>16<br>20<br>6,25<br>64<br>4<br>Complete the following table and draw isoquants for three<br>output level.<br>If r=$2/ hr and w=$12.5/hr, draw three isocost lines when cost is<br>$50, $100 and $150<br>What is optimal combination of labour and capital for an output<br>level of 10? What is the cost?<br>

Extracted text: Exercise 4 Based on production function Q (L, K) = L0.5K0.5, Output=20 Labour Capital Labour Capital Labour Capital Output-10 Output-24 4 4 4 64 20 6,25 64 16 16 64 10 16 20 6,25 64 4 Complete the following table and draw isoquants for three output level. If r=$2/ hr and w=$12.5/hr, draw three isocost lines when cost is $50, $100 and $150 What is optimal combination of labour and capital for an output level of 10? What is the cost?

Jun 11, 2022

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Exercise 4 Based on production function Q (L, K) = L0.5K0.5, Output=20 Labour Capital Labour Capital Labour Capital Output-10 Output-24 4 4 4 64 20 6,25 64 16 16 64 10 16 20 6,25 64 4 Complete the...

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